A Panel Data Analysis for the German Market
5 Research Design
5 Research Design
This chapter develops the research design for the subsequent empirical analyses. Section 5.2 describes the used data, and Section 5.3 outlines the model. Finally, Section 5.4 introduces the econometric approach to be applied to the data.
The research design is grounded on the description of the applied sample selection process and variables used. This is followed by descriptive statistics.
5.2.1 Sample Selection and Data Sources
The data sample used for the empirical analyses is based on companies included in the composite DAX (CDAX). The index comprises all companies listed in the general standard and prime standard segments at the Frankfurt Stock Exchange and reflects the performance of the overall German equity market.102 The sampling period spans the 5-year period from 2005-09 and covers all major phases of an economic cycle, including a phase of expansion (2005), boom (2006-07), contraction (2008), and recession (2009).103 The sample consists of all companies included in the index at year-end.
The initial sample pool includes 745 firms. First, 18 companies issuing only preferred stock (Vorzugsaktien) but no common stock (Stammaktien) are excluded from the sample. Preferred stock typically has a priority over common stock in the payment of dividends but carries no control rights. This class of shares can thus not be considered in an ownership-performance ← 133 | 134 → analysis. Second, following, for example, Edwards and Weichenrieder (2004), McConnell and Servaes (1990), and Pedersen...
You are not authenticated to view the full text of this chapter or article.
This site requires a subscription or purchase to access the full text of books or journals.
Do you have any questions? Contact us.Or login to access all content.